DENVER, Nov. 15, 2017 /PRNewswire/ - (TSX: IMP)
(ITMSF:BB) – Intermap Technologies Corporation ("Intermap"
or the "Company") reported financial results for the third quarter
ended September 30, 2017.
All amounts in this news release are in United States dollars, unless otherwise
noted.
For the third quarter of 2017, Intermap reported net income of
$1.1 million, compared to a net loss
of $2.0 million for the same period
last year. Total revenue for the quarter increased 91% to
$6.3 million, compared to
$3.3 million last year. Operating
Income for the quarter was $1.7
million, compared to a $1.9
million loss for the same period last year. Third quarter
adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was
$2.1 million, compared to a
$0.8 million loss for the same period
last year.
The Company also announced today that it will proceed with its
previously approved share consolidation on a 10 for 1 basis,
adopted at the Annual General and Special Meeting of Shareholders,
held on May 16, 2017, subject to
fulfilling the requirements of the Toronto Stock Exchange.
The Company finished the third quarter with $5.3 million of cash and negative working capital
of $0.8 million, compared to cash of
$2.4 million and a working capital
deficit of $30.9 million last year.
For the nine-month period, personnel expense, the largest component
of the Company's cost structure, declined to $6.2 million, compared to $7.7 million last year, a 20% improvement.
Investments in sensor upgrades and processing technology totaled
$3.6 million for the nine-month
period, compared to $100 thousand for
the comparable period last year. Total assets, which exclude the
NEXTMap® database and internally developed software
applications, increased to $12.4
million, up from $5.8 million
last year.
The Company recently completed a large government task order,
providing high resolution multi-frequency imagery and elevation
data and services including change detection, sensor fusion and
technology transfer. The cost effective and timely fulfillment of
this contract was enabled by Intermap's proprietary multi-sensor
acquisition platform. The new foundational datasets will be used to
support applications, including flood analytics, security
monitoring, transportation and pattern-of-life algorithms,
agriculture crop analysis, urban development and modernization, and
energy infrastructure development. The Company's sensors
successfully captured error and void-free high resolution spatial
content through heavy cloud-cover and tree canopies. The contract
was delivered on time and on budget, while realizing a 25% increase
in data processing speed and data volume throughput.
"These results reflect significant year-over-year improvement in
the Company's solution offerings to its customers, top and
bottom-line financial performance, cost structure, liquidity
position, and operational capabilities", commented Patrick Blott, Intermap's Chairman and CEO.
"Intermap is winning customers all over the world, including major
global insurance companies and governments, by consistently
providing actionable geospatial answers that are timely, relevant,
and accurate. We have invested in cutting edge processing,
application development, and sensor technology. Our customers do
not require deep geospatial expertise to access scalable, cloud
native, and web-based tools which help them to discover, filter and
assess the information that is most relevant to their needs,
derived from multi-sensor spatial data that is 100% cloud-free,
every time, without gaps or voids."
As a reminder, last fall the Company adopted a no further
guidance disclosure policy until it is profitable and its debt
burden has been reduced.
Financial Review
The Company is focused on growing revenue and profitability.
Consolidated revenue for the quarter ended September 30, 2017 totaled $6.3 million, compared to $3.3 million for the same period in 2017,
representing a 91% increase. Approximately 36% of consolidated
revenue was generated outside the United
States, compared to 13% for the same period in 2016.
Personnel expense for the second quarter of 2017 was
$2.1 million.
Third quarter adjusted EBITDA, a non-GAAP and non-IFRS financial
measure, was positive $2.1 million,
compared with negative $0.8 million
last year. Adjusted EBITDA is defined as earnings before interest,
taxes, depreciation and amortization, and excludes non-recurring
and non-cash payments; restructuring costs, share-based
compensation expense, gain or loss on foreign currency translation,
and fair value adjustments to derivative instruments. Adjusted
EBITDA is not a recognized performance measure under IFRS. The most
directly comparable measure to adjusted EBITDA calculated in
accordance with IFRS is net income (loss). See Non-IFRS Measures
below for a reconciliation of the Company's net loss to adjusted
EBITDA for the third quarter of 2017 as compared to 2016.
The Company's consolidated financial statements and management's
discussion and analysis will be filed on SEDAR at: www.sedar.com.
Important factors, including those discussed in the Company's
regulatory filings (www.sedar.com) could cause actual results to
differ from the Company's expectations and those differences may be
material.
Non-IFRS Measures
Adjusted EBITDA is not a recognized performance measure under
IFRS and does not have a standardized meaning prescribed by IFRS.
The term EBITDA consists of net income (loss) and excludes
interest, taxes, depreciation, and amortization. Adjusted EBITDA is
included as a supplemental disclosure because management believes
that such measurement provides a better assessment of the Company's
operations on a continuing basis by eliminating certain non-cash
charges and charges that are nonrecurring. The most directly
comparable measure to adjusted EBITDA calculated in accordance with
IFRS is net income (loss).
(UNAUDITED)
|
Three months ended
September 30,
|
U.S. $
millions
|
2017
|
|
2016
|
Net income
(loss)
|
$
1.1
|
|
$
(2.0)
|
|
Financing
costs
|
0.6
|
|
1.4
|
|
Depreciation of
property and equipment
|
0.3
|
|
0.2
|
|
EBITDA
|
$
2.0
|
|
$
(0.4)
|
|
Change in value of
derivative instruments
|
-
|
|
(0.6)
|
|
Restructuring
costs
|
-
|
|
0.2
|
|
Loss on foreign
currency translation
|
0.1
|
|
-
|
|
Adjusted
EBITDA
|
$
2.1
|
|
$
(0.8)
|
About Intermap Technologies
Headquartered in Denver,
Colorado, Intermap (www.intermap.com) is an industry leader
in geospatial intelligence solutions. These geospatial solutions
are used in a wide range of applications including, but not limited
to, location-based information, risk assessment, geographic
information systems, engineering, utilities, global positioning
systems, oil and gas, renewable energy, hydrology, environmental
planning, land management, wireless communications, transportation,
advertising, and 3D visualization. Intermap generates revenue
from three primary business activities, comprised of i) data
acquisition and collection, using proprietary, multi-frequency,
radar sensor technologies, ii) value-added data products and
services, which leverage the Company's proprietary NEXTMap®
database, together with proprietary software and fusion
technologies, and iii) commercial applications and solutions,
including a webstore and software sales targeting selected industry
verticals that rely on accurate high resolution elevation data. The
Company is a world leader in data fusion, analytics, and
orthorectification, and has decades of experience aggregating data
derived from a number of different sensor technologies and data
sources. For more information please visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release constitutes
forward-looking statements, including the Company's profitability
and revenue generating activities. The words "anticipate",
"expect", "project", "estimate", "forecast" and similar expressions
are intended to identify such forward-looking statements. Although
Intermap believes that these statements are based on information
and assumptions which are current, reasonable and complete, these
statements are necessarily subject to a variety of known and
unknown risks and uncertainties. You can find a discussion of such
risks and uncertainties in our Annual Information Form and other
securities filings. While the Company makes these forward-looking
statements in good faith, should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary significantly from those
expected. Accordingly, no assurances can be given that any of the
events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what benefits that the Company
will derive therefrom. All subsequent forward-looking statements,
whether written or oral, attributable to Intermap or persons acting
on its behalf are expressly qualified in their entirety by these
cautionary statements. The forward-looking statements contained in
this news release are made as at the date of this news release and
the Company does not undertake any obligation to update publicly or
to revise any of the forward-looking statements made herein,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities law.
SOURCE Intermap Technologies Corporation